At the End of the Month,the Adjusting Journal Entry to Record

question 3

Multiple Choice

At the end of the month,the adjusting journal entry to record the use of supplies would include:

• A)A debit to supplies and a credit to expenses.
• B)A credit to supplies and a debit to expenses.
• C)A debit to supplies and a credit to revenue.
• D)A credit to supplies and a debit to cash.

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Definitions:

Generates Revenues

Refers to the activities or mechanisms through which a business or organization brings in income.

Traceable Fixed Cost

A fixed cost that can be directly associated with a specific cost object, such as a product, department, or project.

Common Fixed Cost

Expenses shared by different segments or units within an organization, not directly attributed to any specific part.

Responsibility Center

A unit or department within an organization for which its managers have authority and responsibility for performance and outcomes.